Personal liability risks prompt governance review for Kirkton-Woodham Community Centre

Board members and volunteers could be personally liable in the event of an accident or injury

The Kirkton-Woodham Community Centre.

By Galen Simmons

Concerns about personal liability exposure for volunteer board members and volunteers at the Kirkton-Woodham Community Centre have prompted Perth South and South Huron councils to begin examining significant changes to how the jointly owned facility is governed and operated.

At a joint meeting held at the community centre on Feb. 9, councils from both municipalities received a report from David Woodward, a partner with Lerners LLP in London, outlining serious gaps in liability protection under the current governance structure of the community centre and the broader Kirkton-Woodham Community Complex.

“At this point, the community centre is owned by Perth South and South Huron together 50/50, however they are not directly involved in the operation – it’s members of the community who are running it on a day-to-day basis,” Woodward said. “There are contributions from South Huron and Perth South. … More recently, it’s been $20,000 each (annually) by South Huron and Perth South with the volunteer contingent here in Kirkton-Woodham operating the community centre.”

The complex, which includes the community centre, swimming pool, community hall, squash courts, pavilions, ball diamonds, playground and a Huron County Library branch, is jointly owned by Perth South and South Huron. While Perth South is designated as the operating municipality under a 2024 agreement, the day-to-day operations of the facility are handled by a volunteer board drawn from the Kirkton-Woodham community.

Woodward’s report makes it clear that, under the current arrangement, volunteer board members and other volunteers may not be personally protected by any liability insurance if an injury, accident or other claim arises from the operation of the complex. In some scenarios, those volunteers could be personally responsible for damages.

“By volunteers operating the community centre, unfortunately those volunteers – those of you who are volunteering – can be personally responsible for any liabilities and claims that arise in connection with the operation of the community centre,” Woodward said. “That would be incredibly unfortunate if some of you, altruistically, try to make your community better and run community events, whether it be buck and does, baseball tournaments, all that sort of thing. When people are injured, it’s quite possible that they would look to the people who operate the community complex and the community centre and make a claim against you.

“That means personal responsibility. It’s very important that gets addressed because right now, under the current structure, there’s no insurance involved to protect you and there is no direct alternate company in place – or at least clearly in place – to protect you. Those claims that can arise as a result of the operation of the complex could be paid by you. That means your farm, your home, everything you earn; that could be a big problem for people here.”

While the report notes it is not fully clear whether the board is operating as part of the incorporated Kirkton-Woodham Community Centre or as an unincorporated volunteer committee — a distinction that has major implications for liability exposure – board members and councillors from South Huron clarified the operators of the community centre had been incorporated at one point, but that corporation was dissolved to secure grant funding in the past.

Even if the board was operating under an incorporated entity, Woodward said directors and officers can still face personal liability without adequate insurance in a number of circumstances including workplace safety issues, environmental claims, construction-related liabilities, payroll remittances and unpaid debts.

As owners of the land and buildings, Perth South and South Huron would also likely be named in any lawsuit arising from the operation of the complex, the report states, underscoring the need for clearer accountability, oversight and risk management.

Woodward emphasized the current governance model “must change” to protect volunteers and ensure both municipalities can properly manage their potential liabilities. While acknowledging the strong community pride and local involvement that have sustained the complex for decades, the report stresses that goodwill alone is not a substitute for appropriate insurance coverage and formal governance structures.

The report outlines multiple possible governance options, but discussion at the Feb. 9 meeting focused on two primary paths forward.

One option would see the volunteer board become a formal committee of council. Under this model, the committee and its volunteers would be covered under Perth South’s municipal liability insurance, significantly reducing personal risk. Day-to-day operations would be more directly tied to municipal oversight, with the board functioning in more of an advisory role within a municipal framework. Operation of the community centre could fall to municipal staff under this option.

“In order for liability coverage to be extended to a committee of council, there needs to be a resolution passed by council (saying) you are officially a committee of council,” said Intact Insurance regional manager of municipal and public administration Tony Commisso, who was on hand to lend his expertise as Perth South’s insurer. “That committee needs to be accountable to council for all their activities and actions. That means that committee group needs to report to council and all finances are directed by council and approved by council.

“I’m going to assume that’s where you lost your insurance coverage as a previous committee of council because it sounds like the board is running its own finances without getting direction from council on how to use those finances. … And the final condition is that one or two councillors sit on that committee of council as well, which it sounds like there was in the past. What’s important to note is that the committee of council and their volunteers are all covered under that general liability insurance that the township purchases annually.”

The second option would involve the Kirkton-Woodham Community Centre board formally establishing itself as a separate legal entity and securing its own comprehensive insurance coverage to protect board members and volunteers. While this approach would preserve a higher degree of operational independence, both Woodward and Commisso noted insurance costs for a stand-alone entity would be substantially higher and could place new financial pressure on the organization.

Council and community discussion at the meeting touched on the importance of maintaining meaningful local input in the operation of the complex, regardless of which governance model is ultimately chosen. The report acknowledges that community members value local control and responsiveness and cautions that any transition must balance risk management with the community’s longstanding role in shaping programming and operations.

Speaking on behalf of the community centre board, treasurer Tim Shute told those gathered that many of the prerequisites necessary to be covered under Perth South insurance policy as a committee of council are already being met, making the process of becoming a committee of council simpler and less expensive than if the board chooses to secure its own insurance as a separate entity leasing the community centre from Perth South. However, Shute warned both councils that having municipal staff take over operations at the community centre might be more involved than either municipality fully understands.

“I don’t think the community wants to be in the position where they feel like they need to ask the municipality for permission to make use of this place,” Shute said. “On paper, it belongs to the municipalities, but mostly it belongs to the community. It was not built by the municipalities; it was built by the community. It was built by community dollars, not municipal dollars. Further to that, we witnessed the (Township) of Perth South taking on the administration of the whole complex and finding out they do not have the staff; they were not prepared to carry on with what they got into.

“So, I’m nervous and I’m afraid and I would hope the councils put a lot of consideration into the amount of staff time that is going to be required to take on the operations of this facility.”

Following the presentation and discussion, both Perth South and South Huron councils voted to direct staff to prepare a follow-up report exploring the two options in greater detail. That report is expected to outline governance implications, insurance considerations, financial impacts and how each model would affect volunteer involvement and community access.

As no immediate changes were made at the meeting, members of the community centre board and the wider community expressed concern with continuing to operate the community centre in the short term without liability protection for board members and volunteers.

“We do have a product called the recreation affiliates policy,” Commisso said. “There is an application; I cannot guarantee that this group will qualify for that coverage, but I can send that application to staff, they can complete the application, submit it for a quote and if it is a number that meets the requirements, then we can possibly have short-term liability policy to protect this group.”

When asked how quickly that short-term coverage could be in place, Commisso said the application is just 10 questions and, if approved, the policy could be in place within 10 days.

Further discussion is expected once staff return with additional analysis and recommendations. At that time, Perth South Mayor Sue Orr said another joint council meeting will be held.